DAX Xetra (cash index)
The bulls fought back well yesterday to post a strong bull candle and a strong recovery signal.
A bullish engulfing (bull key one day reversal) yesterday has been confirmed early today with a strong opening gap higher that has now filled the previous gap at 12,143.
However, there is more that needs to be done in the recovery.
Momentum indicators are ticking higher and if the RSI starts to tick into the high 40s then this would confirm increasing bull control.
On the hourly chart there is certainly an improvement on momentum indicators but the RSI needs to be sustainably into the 60s and Stochastics strong.
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